The Bank of England is expected to maintain interest rates at 3.75%, while markets are close to predicting a one rate hike by the end of the year. Since the start of the Iran war, the dollar has been a popular currency choice, outperforming other defensive currencies like the Japanese yen or the euro. This is due to the UK's lower reliance on energy imports and Britain's higher borrowing rates. However, the pound may face additional pressure if labour market conditions continue to deteriorate. The Bank of the England's decision on interest rates could influence the longer-term outlook for the BoE.